Managing Your Cap Table: Common Mistakes and Avoidable Missteps

Cap tables are part of a company’s DNA; the composition of a cap table can reveal a lot about who the decision makers are and even perhaps what a company might do. From the founding of your business to an exit, you must fully comprehend your company’s ownership and understand how certain changes, such as new rounds of financing or the issuance of options, might impact the economics to each equity holder. Despite the importance of your cap table, it is very easy to make mistakes. For example, many companies still rely on spreadsheets (read more about this in Cap Table Management: Stop Relying On Spreadsheets) to manage their cap table, but more sophisticated methods are available and needed once a business raises capital. As your company grows, a number of things will occur that are sure to complicate your cap table. Even the slightest misstep in a spreadsheet cap table can amount to a huge problem.

Tips for a Successful Board Meeting

All companies, from large businesses to startups, will need to hold regular board meetings. These meetings will provide Board members the opportunity to evaluate operations and guide the strategic vision of the company. For that reason, members of the Board are critical advisers whose input will be crucial for driving future success. Ensuring a smooth and efficient meeting will take advantage of the Board’s limited time while providing the maximum benefit for the business’s long term strategic initiatives.